A buyer from California is purchasing a residential lot in a Nevada subdivision that is not connected to a municipal water system. The listing agent tells the buyer that water rights 'come with the land' and no further action is needed. The buyer later discovers that the lot has no valid water right and no domestic well permit. Which of the following statements most accurately describes the potential consequences and liability in this situation?
Correct Answer
A) The listing agent may face disciplinary action for misrepresentation, and the buyer may have a claim for damages because the agent's statement that water rights come with the land was false under Nevada law
The listing agent's statement that water rights 'come with the land' is factually and legally incorrect under Nevada law. Water rights are separate property interests that do not automatically transfer with real property. By making this false statement, the agent may have committed misrepresentation or provided negligent advice, which could subject them to disciplinary action by NRED under NRS Chapter 645 and expose them to civil liability. The buyer, who relied on this statement to their detriment, may have a valid claim for damages.
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Related Topics & Key Terms
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Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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